Demand for photography services declined, lowering demand for photography supplies.
New York, NY (PRWEB) March 03, 2014
Similar to most industries in the retail market, the Online Camera and Camcorder Sales industry is not recession-proof. Overall industry revenue is expected to decline at an average annual rate of 1.2% over the five years to 2014. “Skyrocketing unemployment and reduced per capita disposable income pushed consumer sentiment down significantly during the recession,” according to IBISWorld Industry Analyst Vanessa Giraldo. Moreover, fewer people took vacations, which negatively affected the industry since vacation photography is a key driver for spending on cameras. Demand for photography services, such as those used for weddings, school pictures and family portraits, also declined, consequently lowering demand for photography supplies.
These factors led to diminished demand for discretionary products, which include items of entertainment and leisure provided by operators in this industry. Industry profitability also suffered, plummeting at the peak of the recession. Despite these trends, the industry has been expanding, with the number of stores increasing slowly at an average of 0.2% per year to 3,853 over the five years to 2014.
Industry revenue is expected to decline 1.4% in 2014, bringing the industry total to $5.2 billion. “Revenue growth is expected to be particularly strong in 2018 and 2019, as consumers begin to feel more secure indulging in items they delayed purchasing during the recession,” says Giraldo.
Digital cameras have driven an increasingly significant portion of the Online Camera and Camcorder Sales industry. The ability to preview pictures immediately and personally save and print the photographs helped sales of digital cameras increase. Although digital cameras have become the key revenue source for the industry, their success has also hurt the industry in several ways. For example, low-quality compact cameras sales have suffered due to rising digital camera sales. The industry has also been hurt by smartphones' progressively higher-quality cameras, which have encouraged many consumers to abandon digital camera purchases in favor of the phone's built-in camera. The smartphones' infiltration into the US market is expected to increase, presenting a threat to the industry going forward.
For more information, visit IBISWorld’s Online Camera and Camcorder Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry is composed of e-tailers that sell video cameras, cameras, tapes, discs, video recorders and combination electronic game and disc players. Brick-and-mortar sales of these products are not included in the report.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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